control and the dependence on directors to run the affairs of the company. Corporate decisions affecting the existence of companies are also placed in the hands of these few. This essay seeks to review the duties of directors under UK and US laws in takeover situations and how the courts interpret the decisions taken by directors to determine whether or not the interests of the company and its shareholders was paramount in arriving at their decision. B. ENGLISH LAW Under English Law‚ directors’
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Cash Flow Theory of Takeovers: A Financial Perspective on Mergers and Acquisitions and the Economy Michael C. Jensen Harvard Business School MJensen@hbs.edu © Michael C. Jensen‚ 1987 “The Merger Boom”‚ Proceedings of a Conference sponsored by Federal Reserve Bank of Boston‚ Oct. 1987‚ pp.102-143 This document is available on the Social Science Research Network (SSRN) Electronic Library at: http://papers.ssrn.com/ABSTRACT=350422 The Free Cash Flow Theory of Takeovers: A Financial Perspective
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and 250€ per share may have some reasons. The main reason is that‚ as anticipated before‚ it is very difficult to evaluate a company. Furthermore‚ it is even more difficult to evaluate how many synergies Vodafone Air Touch would benefit from this takeover. So it is very difficult to evaluate how much this
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Asset Management‚ an asset management company based in London‚ has in fact taken advantage of their current lower price shares and accumulated the company’s shares expecting a turn around. This poses a serious threat to the company of an hostile takeover. Since the price-war amongst the competitive company has finished‚ the company is focusing on increasing sales and profit margin‚ as well as debt reduction. The company is at a fix since it can’t cut the dividends‚ or sell more shares at the current
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CHAPTER 1 AN OVERVIEW OF FINANCIAL MANAGEMENT Forms of business organization Answer: c [i]. Which of the following could explain why a business might choose to organize as a corporation rather than as a sole proprietorship or a partnership? a. Corporations generally face fewer regulations. b. Corporations generally face lower taxes. c. Corporations generally find it easier to raise capital. d. Corporations enjoy unlimited liability. e. Statements
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(Schweppes‚ Budweiser‚ Danone etc.) Takeovers - 1994: Extended takeover battle spanning around half a year - obvious negative impacts for corporation Future Steps - 1997: Financial year ending December ’97 showed significantly diminished profit comparative to previous year. Concerning‚ despite many noteworthy new investments. Brief Timeline: 1901: Yeo Hiap Seng Holdings Founded (family business) 1968: Publicly Listed 1994: Family infighting leads to takeover of the now "second largest food and
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”Philip Morris - Kraft” Case Nurettin Y¨cesu (10516099) - Pınar Dilhan Eldemir (10652007) u April 25‚ 2011 1 Introduction In this case‚ we will analyse how a hostile takeover creates benefits for both parties. The hostile takover approach can be considered as ”taking over a company with a hostile manner” but with the offers and deals‚ it becomes a solution to many different structures within the company. The decisionmaking through a case as this requires experienced‚ rational management skills
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voting restriction in Mannesmann’s articles of association limits Vodafone’s vote up to 5%‚ no matter how much shares it acquires. Given these facts‚ Vodafone has to review its strategy‚ the valuation of Mannesmann and the probability of successful takeover. 1. Mannesmann’s Acquisition of Orange PLC On October 20‚ 1999‚ Mannesmann acquired Orange to increase its European footprint‚ in particular in UK‚ and develop its Internet‚ mobile and wireless data coverage. However‚ the efficient market
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Submitted by: Jeet K Bhatt Roll No: 14 Assignment – FMC Corp. 1. What were the motivations for FMC corp. to go for recapitalization? a) To eliminate a takeover attempt: The stock was attractively valued and the company had quite a lot of cash ($403 million in 1986) in its hands. It made the company attractive to hostile takeovers. b) To give FMC employees a greater stake in the company: Company showed strong cash on its balance sheet. But the employees‚ who worked hard to achieve this
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The RAND Corporation Takeover Bids‚ The Free-Rider Problem‚ and the Theory of the Corporation Author(s): Sanford J. Grossman and Oliver D. Hart Source: The Bell Journal of Economics‚ Vol. 11‚ No. 1 (Spring‚ 1980)‚ pp. 42-64 Published by: The RAND Corporation Stable URL: http://www.jstor.org/stable/3003400 . Accessed: 11/05/2011 20:16 Your use of the JSTOR archive indicates your acceptance of JSTOR ’s Terms and Conditions of Use‚ available at . http://www.jstor.org/page/info/about/policies/terms
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